The Labor
Department announced on Tuesday the U.S. producer-price index (PPI) edged up 0.1
per cent m-o-m in July, following an unrevised
0.2 per cent m-o-m advance in June.
For the 12
months through July, the PPI increased by 2.2 per cent, sharply decelerating
from an upwardly revised 2.7 per cent surge
(from +2.6 per cent) in the previous month. This marked the
weakest annual gain in four months.
Economists had expected
the headline PPI would gain 0.2 per cent m-o-m and 2.3 per cent over the past
12 months.
According to
the report, the July increase in the headline index was due to a 0.6-per cent m-o-m
climb in the index for final demand goods. Meanwhile, the index for final
demand services slipped 0.2 per cent m-o-m.
Excluding
volatile prices for food and energy, the PPI was unchanged m-o-m and
jumped 2.4 per cent over 12 months, registering its softest annual rise since
March (+2.1 per cent y-o-y). Economists had forecast gains of 0.2 per cent
m-o-m and 2.7 per cent y-o-y for July. In June, the core PPI showed a 0.3 per
cent m-o-m increase (revised from +0.4 per cent m-o-m
in the initial estimate) and a 3.0 per cent y-o-y soar.